To pipeline to germany by flooding the market and sinking prices russia sees an opportunity to crush the us shale industry which is dangerously levered to the hilt russia is also fed up with cutting production outputs time after time while us shell producers each time up production to fill in the market as a result saudi arabia cut its crude price as much as 6. 00 to 7. 00 per barrel and is looking to raise its daily alpo by as many as 2000000. 00 Barrels Per Day as it too is ready to fight for market share in the u. S. Oil and gas industry is facing attack from 3 sides falling prices from reduced demand a Global Movement to divest from fossil fuel and crushing debt loads the industry has about 86000000000. 00 a rated do the next 4 years and as analysts have warned before below 50. 00 per barrel Many Companies will be unable to service their debt obligations this in turns has the Banking Sector as these. Companies start defaulting big banks including j. P. Morgan city Group Wells Fargo and goldman are down between 9 to 13 percent today as the selling pressure intensified across all sectors u. S. Markets triggered a 15 minute halt at the am the dow fell over a 1000 points as investors continued to seek safer assets the yield on the 10 year dropped below 0. 5 percent for the 1st time ever in the history crude prices have become a bigger problem for the markets than the coronavirus now as itll be virtually impossible for the s. N. P. To bounce when the Energy Sector is down 15 percent interesting way enough gold that defacto safety asset is not spiking instead it is trading flat someone down indicating that people are selling without prejudice this type of broad based sell off is indicative of a cash crunch and that leverage funds are receiving margin calls forcing them to sell out of assets like gold in order to free up cash analysts are now expecting the central bank to cut another 75. 00 bits in its march meeting next week even though Monetary Policy is unlikely to be effective at the moment reuters notes that mondays move has wiped out approximately 2. 00 trillion dollars in value off the global stock market no kristie i mean it is been a crazy day here with the markets but its all across the board as you just mentioned but why are we really seeing this right now weve seen buyers come in when weve seen these massive selloff weve seen the departures come in and buy it up so it brings it back up so why are we seeing that now are we not going to see that rebound it is because the oil sector is one of the basic cornerstones of the entire u. S. Equity markets right now were seeing a collapse of the entire industry and that in turn has the stomach implications for the entire market we all remember what happened in 2008 when people at the faulted on their Mortgage Loans and that had a Ripple Effect all across banking consumers exciter or saying the same thing now thats why financials are down so much today because the oil sector is going to hit the entire broad based commodities sector is going to hit the u. S. Financial sector and. Well hit start consumers will tell us all the way down the line and were going to talk about this at length here in just a minute but i do want to bring something up because as weve talked about whats going on with the Airline Industry especially due to the coronavirus thats whats actually been pushing these oil prices down and now today boeing who is generally fared well even despite their 737. 00 max problems theyre down 12 percent on monday and theyre not because federal regulators were not actually happy about some of the stuff thats going on with the 737 max they had a bundle of wires that they said oh thats safe dont worry about it and regulators are saying no so theyre even feeling the pain on the on this day of massive massive sell off so will probably see a bell or probably airlines and or that well Energy Sector as well absolutely lets bring in rick rule c. E. O. And president of Sprott Holdings who is joining us out of vancouver so request saying the energy junk bond market absolutely crashing today as Shell Companies now are able to meet their debt and Interest Payment obligations so just like we just said in 2000 when we looked at which banks had the most exposure to bad mortgages lets take a look here at which banks now have the most exposure to a wave of the falls and the sale shell patch. The truth is that the pain will be widespread across American Banking from regional banks as an example texas banks and oklahoma all the way through the biggest banks and they should as you pointed out your head or all the big banks are off today the real surprise i think might take place in the e. T. F. Market though you noted that theres an awful lot of non Investment Grade or junk rated debt in Public Markets issued by Oil Companies i read the other day that about 15 percent of non Investment Grade ranked bonds in the market are issued by oil and Gas Companies and a lot of those are held in e. T. F. That are income e. T. S. The difficulty with that is that if Retail Investors begin to sell those. Well the e. T. F. Themselves are quite liquid the bonds that underlie them are low. Yes liquid what happens in an e. T. F. In a selloff like this has the has the effect of a bank run so my suspicion is that the very large banks that have access to liquidity from the fed will actually behave better than some of these junk bond e. T. F. Might might fare well see over the next 2 or 3 weeks a reckoning is certainly coming in credit markets with regards to energy now or you know can the oil sector actually recover from what were seeing here on monday i mean is the shell salvageable i mean what is the Systemic Risk the risk of sub 30. 00 oil for opec the u. S. And russia for that matter and how does this abrupt arrest of the saudi royal family members actually play into whats happening here with oil today. Well theres several questions there lets unpack them the 1st thing about the oil the oil industry is of course it survives gretta notwithstanding the world runs on oil the truth is and we said this on your show before the cure for low prices is low prices a period of oil pricing below 40. 00 a barrel reduces sustaining Capital Investment which over a year and a half or so reduces production it also shuts in new investments remember that oil wells deplete every day you pump an oil well your business gets smaller you have to drill a new one to replace it in some period sime so in truth the cure for low prices is low prices the impact on the u. S. Shale industry is very very different thats a capital intensive business it is highly highly highly reliant on low Interest Rates and High Oil Prices because its capital intensive and because the decline ratio is so high the u. S. Oil Services Industry and the shale industry focus sort of on the delta between the cost of capital and near term oil pricing which is a fancy way of saying that shale prices will decline precipitously at this oil quote the interesting thing to me is that the 2 alleged. Agonists in this dispute the saudis and the russians both recently announced very very Large Capital programs the russians 150000000000. 00 program in arctic siberia the saudis a 100000000000. 00 sale Shale Program pardon me in the gulf this oil price undermines both of those projects remember the 1st comment over time the cure for low prices is low prices the cure for high prices is high prices markets in fact work that shouldnt come to any solace for Oil Investors in the near term however. And now as we see this entire crash happening right now the company mitchelson is trapping measures to blunt the entire economic fall out of oil so what measures can they possibly come out with that will have any effect on the market aside from a total ballad the factor. Im tempted to say thats above my pay grade. Its very difficult to fight something as big as a market my suspicion is youll remember rahm emanuel saying never waste a great crisis my suspicion is that the Political Forces will use this event as an excuse to further artificially lower Interest Rates and make much more credit available my understanding is that the the feds are looking to increase the repo rate that is the overnight. Lending availability so my suspicion is that the only tool the trumpet ministration really has available to it is further quantitative easing and further manipulation of already unreasonably low Interest Rates and now rick i mean is this the bottom of what were seeing right now i mean is monday the bottom of oil markets are going to go lower and really at the end of the day where the report the rebound look like. The markets are already disconnected from reality and truth is in. Very near term as buffett famously says the market is a voting machine not a weighing machine youre playing on peoples emotions and peoples narrative and when people are panicked and i think people are panicked anything can happen in the near term the International Energy agency suggests that the fully loaded cost to produce a barrel of Oil Worldwide thats the United States indonesia china russia saudi is about 60. 00 a barrel that means lifting cost discovery cost capital cost also prior year write downs so right now in a very gross since the industry is making the stuff for 50. 00 or 60. 00 a barrel selling it for 35. 00 a barrel losing 15 or 20 1000000. 95 times a day this gets rather boring and its clearly unsustainable but in the near term its not about arithmetic its about narrative and panic. Thank you so much. A pleasure thank you. And the World Health Organization announced monday that the threat of Corona Corona virus becoming a pandemic is real as the number of cases now exceeds 100000 with cases showing up in more than 100 nations. Its certainly troubling that so many people and countries have been affected so quickly. Knowledge. As has a foothold is so many countries Death Threats of the bundle meek has become there he says researchers are now reporting the number of cases outside of Mainland China have tripled in the past week eclipsing 30000 cases as of monday so if it was pointed out that of the 80000. 00 cases in Mainland China 70 percent have already recovered from the virus outside of china south korea italy and iran have been most affected by the virus with at least 70000. 00 cases in each nation now in response to the growing number of cases in italy Prime Minister just said because he actually signed a decree on sunday restricting movement in the northern regions of the country now the restrictions will affect 17000000 people including those in the cities of milan and venice the w. H. O. Director general made note of efforts to control the spread of the virus. The great advantage we have these diet the decisions we only make as governments businesses communities slimy lease and individuals can even feel it is the tragic to the of if you did me. And for more on this were joined by she chen assistant professor at the Yale University school of Public Health and figure so much for joining us and i do apologize i 70000 there it is actually 7000 cases in italy iran and south korea respectively there and now were seeing more cases outside of china as we just mentioned there than inside it in fact confirmed cases have tripled outside the country in the past week and the w. H. O. Is touting the ability to limit the spread of the virus as we just heard but did the quarantines inside of china actually make a big difference here and what other actions. Should be taken worldwide. Well the inner and also the massive lockdown indeed and how the prevention of the spread of the wires to. War it at least a by some time for the rest of the International Community by the. Largest social disruption so i dont think currently in the us. At this stage of doing that. Larger cost and the disrupt everyones life and the politically. Not feasible but i think there are many other efforts taken by china could be learned by the us and also other European Countries and the International Community for example so should these tenzin is very helpful with all to containing the wires if we can cancel necessary trips and conferences social gatherings where delayed the spreading of the wires and also for those patients who are having some concern about being in fact leave then still there the measures should be taken to have early diagnosis early isolation and early treatment now would be better half or on the way so if we leave them on the community in a family there will be a concert of plaster of infection and also i think a house insurance measures should be taken for example in china starting from. The end of her generate the cover the cost and the emission cost of the hospitals but they gradually did that 1st of the coverage only the confirmed cases about the scenes and many people were not able to become firm so they also covers all suspected cases ive seen for americans specially important because they are larger lumberyard people under insured are without any insurance so cover those costs of where the financial burden and also add to the provider level try bastard to reduce the crossing faction rate. But eventually i think the bottom line is even if we are not able to reduce the total amount of people being infected but we cant get that amount of infections more we solve the heating the capacity of the house here infrastructures and we can treat the People Better and see more lives and currently as china is recovering theyre actually deploy all of a lot of medical practitioner out to middle east especially iran in order to help spread how to contain and quarantine and what practices are effective so right now the w. H. O. Is actually just stopping short of saying that the current a virus is a Global Pandemic so what is the significance of actually giving the virus this title. So i believe that service was very important. Theres a global effort to curb that out of the border crossings all but this is to be coming last and the last the fact to you we small countries like iran like 100. 00 countries and territories are being in fact it is so its very important to to share the information of the travelers and tracking those. Potential people who are in fact id and also i would see very important to have. The iranian because without knowing everyones individual risk of being diagnosed and being in fact it is hard to have anyone to have correct this Risk Assessment to attend those social gatherings so we understanding that information the larger gathering can be very detrimental to the society so like. Yesterday in the west across america so there was some sort of all these was against that but was still ongoing so that was. Something need to really do need to be awarded although people can have a larger source or these tests we can otherwise the people i have been there job less. Absorbed all the help of the by the other people around quickly here because we only have about a minute left but i do have a question about travel you know weve seen a lot of travel restrictions and kind of we weve seen this being a business show obviously weve seen in the Airline Industry just faltering amid all of this happening with the growth of virus weve seen cruise ships off and struck off the coast with the kind of quarantine before theyre able to bring them in is it safe to travel right now i mean even domestically but especially internationally. Yeah. All. Very easy to get by the by people. Spreading to others so im. Sure that like a war they use logic Public Transportation like you try to drive instead of taking those Public Transportation. Unless its 3 travels on the gatherings thank you so much each an assistant professor at the school of Public University thank you for your time. Time now for a quick break but hang here because when we return the chairwoman of wells fargo has stepped down just days ahead of a trash like hearing in which she had called to testify to shake about one of the americas largest banks and i think got a break here in the red number at the club. Little. So what weve got to do is identify the threats that we have its crazy. Let it be an arms race. Spear in Dramatic Development the only and. I dont see how that strategy will be successful very critical. To sit. In. A. Position from which. I think shes come up for from the floor with her betrothed to improve the very nature of my pins you know to try to. Do it because blue glow was going to have to sit in your voice your odds of us have played upon us a little bit in the sport of the family meaning youre fighting with the sofa cushion up. A little less fortunate about photos of multiplications the south. Just buy thatll survival. Youre just. Did. Thats undercutting not whats good for markets its not good for the global economy. And welcome back twitter c. E. O. Jack dorsey will not be removed from his position the Company Announced monday the social media giant reached a deal with activist investor Elliott Management which includes a 1000000000. 00 investment from california based private equity firms silverlake as part of the deal silverlake coast c. E. O. And managing partner. And elliot partner jesse cohn will take the seats on twitters bort now according to the release the board will create a temporary committee headed by lead independent director Patrick Pichette a to continue its policy of a valuation the companys Leadership Structure elliots initial attempts to oust dorsey as c. E. O. Came after he announced plans to temporarily remove to africa while running both twitter and Square Dorsey is the only person to lead to Public Companies valued at more than 5000000000. 00 on the news twitter stock fell slightly but is not feeling the effects of overall markets that have been down at least 7 percent. On the day. Insurance Brokerage Firm has agreed to purchase Willis Towers Watson for 30000000000. 00 in an all share deal which will combine the worlds 2nd and 3rd Largest Companies and the sector the combined company will be headquartered out of london with a name and have a value of roughly 80000000000. 00 now this marks the largest acquisition of 2020 m. Positions a new company to compete with marsh and mclennan the worlds number one insurance Brokerage Firm on the news Willis Towers Watson stock tips 7 percent on monday slightly more than the trend were seeing throughout the overall markets ayaan however plunged by more than 15 percent at times following the details of the merger. And the chairman of the board of wells fargo has resigned the company said in a statement on monday board chair elizabeth do and fellow board member James Quigley both submitted their resignations ahead of testimony in front of the u. S. House Financial Services committee this week regarding the banks 2016 fake accounts scandal duke became vice chairman with wells in october of 2016 shortly after the bank disclosed employees had opened millions of fake accounts without customer consent in an effort to meet sales goals and joining us now to cover all of this is molly barrows contributor with americas lawyer always a pleasure to have molly on the show molly now u. S. Rep Maxine Waters who actually chairs the house Financial Services committee has been critical of these 2 Board Members in regards to the scandal previously calling for them to actually step down how did these Board Members play a role in this fake account scandal. I think its more the lack of role that theyre playing right now which in most to be generally oversight and she thinks theyre way too complacent theyre simply not doing their jobs you talked about that scathing report when she said they should both resign she gave some examples of why she felt they were doing their jobs for example she said duke has been reluctant to meet with federal regulators shes complained about being included on government correspondence thats basically being sent to make sure the bank is taking the right steps. To be compliant and the meantime she said quigley was also talking to other big officials about possibly getting an easy pass from the feds when it came to the situation so theyre both scheduled to testify before the committee on wednesday if they want to have their say and respond to her criticism but chances are they stepped down before they had to take the hot seat on wednesday even though they will still be in the hot seat they wont be in leadership roles apparently at that point right and i just want to clarify that molly so youre saying that they will still in fact testify on wednesday they just wont have any actual official capacity anymore. Correct thats exactly the they are still scheduled to testify and wednesday even though they have officially stepped down there is a replacement for duke but since they have been in this position to oversee so far i feel like lawmakers still want to hear from them as to what steps they took or what they didnt take why they made the decisions that theyve made is there a sense of complacency across the board is this the way the bank is handling things in general so i can imagine they would want to still get get some answers from the folks and at this point what are lawmakers hoping to get out of these hearings on capitol hill this week. You know with such a big scandal with those fake accounts the Bank Wells Fargo had to agree to a number of fines if you will is also regulatory changes that they need to make both within the company the way they manage their employees as well as how they dealt with their customers so they just want to follow them make sure that theyre taking that next right step to make amends and rebuild trust with the American Public i mean they are one of the main 4 big banks and didnt i guess from a financial regulatory regulators point of view that they continue to do well as long as theyre doing well in a legal way and not profiting off of illegal sales tactics like they were before which caused a lot of harm financial harm to customers so again theyve paid several billions in fines and theyve agreed to make these changes to ensure that wont happen again and part of this oversight from these lawmakers is to make sure theyre doing that and so far it doesnt really seem like theyre getting a whole lot of. Good marks in that category water said that some of the. Several regulators are basically saying hey were sending you back your compliance plans wells fargo because what youre sending us doesnt go far enough so maybe that she just wants to get some firmer answers on exactly what are they doing and how far does this complacency go in her opinion but its interesting because they are still up for what the federal regulators may actually do some more action against the bank federal regulators in 2018 actually captured the growth saying they couldnt go any further so molly barrows contributor with americas lawyer thank you so much for your time today. Thanks friend. Thats over this time you must on demand on the brand new portable t. V. Ad available on smartphones to google play and the Apple App Store by searching live on t. V. Or stream t. V. By downloading the public t. V. App on apple t. V. And online t. V. And you could also find our coronavirus tracker on the portable t. V. Apps where you can get the latest news and information about the virus and as always check us out on youtube dot com slash 2 boats are to see you next time. Time after time corporations repeat the same mantra sustainability very important to excel or a transition to sustainable transport sustainability. More equitable and sustainable world. They claim their production is completely harmless. Companies want us to feel good about buying their products while the damage is being done far away this is just going to. Tax ties or financial survival stacey lets learn a salad feel out lets say im the troika and youre on grease of the fight wall street fraud thank you for helping. On the story thats right well thats slavery. Good food descriptions. Even for the owners so how to choose the pet Food Industry is telling us what to feed our pets really be more based on what they want to sell us and whats necessarily good for the pet turns out may not be the best people believe we have animals that have you know diabetes in arthritis they have auto immune disorders theyve got allergies we are actually creating these problems its a huge epidemic of problems all of them i believe can be linked to very simple problem of diet and some dog owners so heartbreaking stories about their pets streets the larger corporations are not very interested in proving or disproving the value of their food because theyre already making a 1000000000. 00 on it and theres no reason to do that research. On. A u. S. General confirms washington is in the process of bringing air Defense Systems into iraq to protect american troops from a potential iranian attack that after 2 marines are killed in iraq during an m. I saw operation. Also this hour about amir putin could potentially run again for president if the public votes for new changes in the russian constitution next month. Plus fires riots and deaths violence sweeps at least prisons after the states strict response to the spread of the coronavirus